Hughes Software Systems Ltd on Tuesday said it would acquire 100 per cent stake in the Bangalore-based Tenet Technologies in an all-cash deal worth Rs 18 crore (Rs 180 million).
The acquisition would be subject to regulatory approvals, after which Tenet would become a wholly-owned subsidiary of Hughes Software Systems.
HSS, which specialises in convergent network software, has signed a 'definite share purchase agreement' with the shareholders of Tenet as part of the takeover process.
The leading communications software company hopes the acquisition will help it significantly increase its presence in the Japanese market.
"HSS chose the inorganic path for developing deeper understanding of the Japanese market and enabling us with several key customer contacts. The acquisition of Tenet's customer base coupled with HSS' scale and proven global delivery capabilities will provide stronger market presence," Manorajan Mohapatra, executive vice president and chief operating officer, HSS, said.
Set up in 1996, Tenet provides design, development and product realisation services for 3G and IP network software services. It has 95 employees, a development centre in Bangalore and a strong sales and support presence in Japan through a wholly-owned subsidiary.
"Both the companies have synergistic offerings, address similar customer segments and make a good fit," Rajendra K Misra, CEO and managing director, Tenet, said.